TOP
IDEAS: Fiscal 2015 was a robust year for IWG Technologies Inc. (TSXV: IWG) and
bigger market opportunities are emerging. The stock is up 38% and is still a
small cap value buy.

Not
many small caps are up in 2015 but IWG Technologies Inc. (TSXV: IWG - $0.30)
stock is, after reporting record sales and profits. Today the Company’s share
price trades 38% higher since becoming an Investorfile Top Ideas stock.

IWG
Technologies Inc.'s main operating subsidiary, International Water-Guard
Industries (IWG), supplies aircraft manufacturers with product technology to
improve the quality of on-board water systems for passengers and crews. The
Company is considered one of the world's leading providers of flight-certified
water treatment units and specialized aircraft water system components for the business
aircraft market. IWG offers a range of products to meet all aircraft potable
water systems' needs, from water treatment units including components such as
pumps to on-demand water heaters, tanks and water control systems.

Fiscal
2015 was a record year for this Company’s financial results. For the 12-month
period ended September 30, IWG Technologies reported revenues grew
29% to $9.5 million. The revenue growth generated big profits. Earnings before
Interest, Taxes, Depreciation and Amortization (EBITDA) were up significantly
at $2.32 million. Net income for fiscal 2015 jumped 71% to $1.28 million or
$0.033 in earnings per share.

IWG
has built a solid foundation, supplying on-board water systems to the medium and large, long-range business aircraft marketplace which continues to be a growing
sector of the aircraft marketplace. Product development and acquisitions by the
Company in recent years has assured that their water systems are at the leading
edge of aviation market requirements, not only for business jets but now for
commercial jets, too.

New
IWG products include on-demand tankless water heaters, which are lighter and
smaller and ideal for aircraft showers and VIP galleys. The Company sells some
of these products to aircraft finishing centers which incorporate these water
systems into specialty configured cabins for long-range commercial jets, such
as the Boeing 787 Dreamliner and the Airbus 350.

For
2016, IWG Technologies has its eye on bigger opportunities in the commercial
jet market, including fleets of aircrafts operated by low-cost carriers. The
Company’s tankless water systems not only improve the quality of on-board water,
but they save airlines the cost and logistics of carrying bottled water on
flights. Product sales to this marketplace could be a significant catalyst for
sales growth.

Since
our first blog post (See: IWG Technologies is soaring in small cap value), this
Company’s financial results and outlook continue to improve. That said, we
reiterate our view that small cap investors should continue accumulating the
Company's shares from the current trading levels up to a high of $0.40. If you
annualize the recent fourth quarter results (EPS $0.01), the stock trades at
less than 8-times earnings which is inexpensive for a growth company. Longer
term, if you factor in the aforementioned growth opportunities, the current
stock price of IWG Technologies is a bargain and could easily surpass our
accumulation target for more upside.

For
a small cap, the Company maintains a very strong balance sheet with a net cash
position of $3 million.

This article is for informational purposes only. This
article is based on the author's independent analysis and judgment and does not
guarantee the information's accuracy or completeness. The information contained
in this article is subject to change without notice, and the author assumes no
responsibility to update the information contained in this article. The
information contained within this article should not be construed as offering
of investment advice. Those seeking direct investment advice, should consult a
qualified, registered, investment professional. This is not a direct or implied
solicitation to buy or sell securities. Readers are advised to conduct their
own due diligence prior to considering buying or selling any stock.

Investorfile.com is not engaged in an investor
relations agreement with IWG Technologies Inc. nor has it received
any compensation from IWG Technologies Inc. for the preparation
or distribution of this article.

The author of this article has acquired and may trade
shares of IWG Technologies Inc. through open market
transactions and for investment purposes only.

Hi Gerry,
Your philosophy is focused on principles that have been shown to produce above average results over time and your record has clearly proven that.
Congratulations on a great blog and thank you for the hard work that you do in sharing and updating your ideas; it is much appreciated.